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CONDO REPORT: Rising interest rates lead to waning market

'Unfortunately, many buyers are staying in the 'big city.' People are now back at the office working and with the high gas prices, the commute and the need to relocate, does not look as desirable,' says columnist
The Barrie skyline at Centennial Beach at night is shown in a file photo.

The demand for real estate in Barrie and the surrounding area has decreased since interest rates started to climb and fewer people were choosing to move out of the Greater Toronto Area.

These factors caused the Barrie condo market to have a slow start to 2023.

In January, the average sale price for a condo apartment in Barrie dropped further to $486,316 and units were selling for an average of 96 per cent of their original list price.

There were 16 condominium apartments that sold in Barrie and the average days on market to sell was 93 days. Compared to January 2022, there were 20 condo apartments that sold but the average days on market to sell was only 15 days.

You may be wondering why.

It's primarily due to buyer demand. If more people were making a move to Barrie causing the demand to be higher, properties would not take as long to sell.

Unfortunately, many buyers are staying in the “big city.” People are now back at the office working and with the high gas prices, the commute and the need to relocate, does not look as desirable.

Last month, there were only three condo townhouses that sold with an average sale price of $341,667. Units were taking an average of 33 days to sell and were selling for 91 per cent of the original list price. Compared to January 2022, the average sale price was $636,855 and the sale-to-list ratio was 119 per cent.

Not only has the average sale price dropped considerably, but the sale-to-list ratio shows that the real estate market shifted over the past year. 

In January 2022, Barrie was in a seller’s market where buyers were bidding on properties causing them to sell for much higher than the asking price. On the other hand, Barrie is now in a more balanced market where buyers and sellers have the opportunity to negotiate with each other.

Condominium inventory has been slowly increasing over the past eight months, but it is not as high as it once was.

Back in 2018 and 2019 when Barrie was experiencing a strong buyer’s market, it was typical to see as many as 120 to 130 condominiums for sale at a given time.

As we move into the spring market, condo supply could increase and if demand remains relatively low, the condo market will likely continue to slow causing prices to adjust downward.

If you are looking to list your home over the next few months, it is imperative for you to have proper guidance on your price and selling strategy from an experienced condo agent. Price competitively! That will be the key to achieving your goals and netting the most money possible in the current market.

There are 79 condos for sale in Barrie, including 67 condo apartments and 12 condo townhouses.

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Ashley Lamb

About the Author: Ashley Lamb

Ashley Lamb is a local condo expert who writes a monthly column about statistics and trends in the Barrie real estate market
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